Question

Which of the following events will cause the demand curve for paid cell phone games to shift to the left? (check all that apply) Console games become cheaper. The quality of free-to-play games declines. The Apple Store increases the fees for hosting cell phone games. The price of cell phones games rises.

Answer 1

A demand curve of a good will shift if there is change determinants of demand except price of that good.

Console games and cell phone games are substitute goods. If console games price falls, then consumer will substitute it with cell phone games. As a result the demand for cell phone games decreases and shifts the demand curve for cell phone games to the left.

Answer: Option (A)